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9/23/12

Auto Industry: Italy on tenterhooks ahead of talks with crisis-hit Fiat

Italians waited with bated breath for talks between Prime Minister Mario Monti and Fiat boss Sergio Marchionne on the future of a troubled car giant that once symbolised Italy's boom.

Marchionne has repeatedly warned he may be forced to shut down one of Fiat's five massive Italian plants, which are all producing way below capacity because of a slump in European car sales that has hit Italy particularly hard.

The subject is an emotive one in Italy - where Fiat is the biggest employer in the private sector and the company's 113-year history is closely bound up with the ups and downs of the Italian economy and the trade union movement.

Marchionne laid out his cards on Friday, saying he hoped the Italian government had taken note that Fiat's recent successes in Brazil had been helped by "financing and tax breaks" given to auto sector investors there.

Read more: Italy on tenterhooks ahead of talks with crisis-hit Fiat

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